OREANDA-NEWS. September 27, 2010. Vladimir Office of the Federal Antimonopoly Service (OFAS Russia) initiated a case against anticompetitive actions of two bakery plants (“Vladimir Bakery Plant” OJSC and “Vyaznikovsky Bakery Plant” OJSC) for the signs of violating Clause 1 Article 11 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia. 

The case is based upon the outcome of the monitoring of prices for socially important food products of first priority, carried out upon instructions of FAS Russia to tighten control over food products markets in the period of draught.

The antimonopoly body suspects violations by the bakery plants simultaneously increasing and maintaining prices for their products without any justification, which can be classified as concerted actions that can lead to restriction of competition and (or) infringing the rights of the public.

“We do not see any objective reasons to increase bread as flour price remains stable. In course of the investigation and inspection of financial documentation the Commission is going to determine whether collusion took place and price increase was economically justified”, commented Deputy Head of Vladimir OFAS Russia Alexei Potanin.

Reference:

Under Part 1 Article 14.32 of the Code of the Russian Federation on Administrative Violations, competition-restricting concerted actions are punishable by an administrative fine upon executive officials – from RUB 20,000 to RUB 50,000 or disqualification for a period of up to three years; for legal entities – an administrative fine from one hundredth to fifteen hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles, and if the income of the violator from selling goods (works, services) on the market where the administrative violation was committed exceeds 75% of the total income of the violator from selling all goods (works, services) – from three thousands to three hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles.